The following unemployment tax rate schedule is in effect for the calendar year 2024 in State A, which uses the reserve-ratio formula in determining employer contributions:Line Item DescriptionRateReserve RatioContribution Rate0.0% or more, but less than 1.0%6.7%1.0% or more, but less than 1.2%6.4%1.2% or more, but less than 1.4%6.1%1.4% or more, but less than 1.6%5.8%1.6% or more, but less than 1.8%5.5%1.8% or more, but less than 2.0%5.2%2.0% or more, but less than 2.2%4.9%2.2% or more, but less than 2.4%4.6%2.4% or more, but less than 2.6%4.3%2.6% or more, but less than 2.8%4.0%2.8% or more, but less than 3.0%3.7%3.0% or more, but less than 3.2%3.4%3.2% or more3.1% Hyram Company, which is located in State A, had an average annual payroll of $850,000 for the three 12-month periods ending on June 30, 2023 (the computation date for the tax year 2024). As of June 30, 2023, the total contributions that had been made to Hyram Company's reserve account, in excess of the benefits charged, amounted to $17,440. Compute the following:Hyram Company's reserve ratio for 2023?

reserve ratio for Hyram company in 2023 is calculated by dividing the totalcontributions that…

Answered: The following unemployment tax rate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following unemployment tax rate schedule is in effect for the calendar year 2024 in State A, which uses the reserve-ratio formula in determining employer contributions:

Line Item Description	Rate
Reserve Ratio	Contribution Rate
0.0% or more, but less than 1.0%	6.7%
1.0% or more, but less than 1.2%	6.4%
1.2% or more, but less than 1.4%	6.1%
1.4% or more, but less than 1.6%	5.8%
1.6% or more, but less than 1.8%	5.5%
1.8% or more, but less than 2.0%	5.2%
2.0% or more, but less than 2.2%	4.9%
2.2% or more, but less than 2.4%	4.6%
2.4% or more, but less than 2.6%	4.3%
2.6% or more, but less than 2.8%	4.0%
2.8% or more, but less than 3.0%	3.7%
3.0% or more, but less than 3.2%	3.4%
3.2% or more	3.1%

Hyram Company, which is located in State A, had an average annual payroll of $850,000 for the three 12-month periods ending on June 30, 2023 (the computation date for the tax year 2024). As of June 30, 2023, the total contributions that had been made to Hyram Company's reserve account, in excess of the benefits charged, amounted to $17,440. Compute the following:

Hyram Company's reserve ratio for 2023?

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